Tanzania boasts strong mining potential

By AGENCIES

PERTH-based explorer Hemisphere Resources is targeting greenfield and semi-advanced projects in East Africa and is currently focused on gold, copper, nickel and platinum-group metals (PGMs) in Tanzania, which it regards as “the ideal entry point” into the region.

In line with this belief, in May this year, Hemisphere acquired the Katomatoma tenement, in north-western Tanzania, 30 km from the Rwandan border, where government geological surveys have identified copper, nickel and cobalt prospects.

“Hemisphere has a strong team with estab- lished networks, relationships and previous experience in East Africa. The company is also well set up and supported for ground-based exploration and resource development activities in Tanzania, which offers a strong pipeline of tenements and project possibilities,” says Hemisphere Resources MD Jason Greive.

He reveals that, in recent months, an assessment of Hemisphere’s existing project portfolio has led to the consideration of many acquisition opportunities in Australia and East Africa.

“Following this review, the 1 128 km2 Katomatoma tenement, as well as Tanzania in general, was considered as an opportunity to exploit senior management’s extensive East African experience and networks,” notes Greive, who explains that the com- pany is well placed to take advantage of opportunities in Tanzania, having personally worked in Tanzania and South Africa for a number of years.

Greive has extensive operational and project development experience in large-scale gold and copper operations and has held senior positions for multinationals such as Barrick Gold and Rio Tinto. In addition, Hemisphere’s Tanzanian-based business development manager is a Tanzanian with vast experience in the country’s mining industry.

Attractive Tanzania

“Tanzania, which supports eight large-scale mines and is one of Africa’s biggest gold producers, has a favourable mineral policy and considerable, yet underexplored and undevel- oped, mineral endowments.

“The country’s mining sector has attracted significant private-sector investment in the past two decades, with various resource companies, such as African Barrick Gold and AngloGold Ashanti, active in Tanzania,” notes Greive.

Hemisphere believes that Tanzania’s stable multiparty democracy and its legal system, based on British common law, provide a sound political environment and framework. The country’s Mining Act was reviewed and reformed in 2010 and is now further aligned with the requirements of investing companies and government.

“Tanzania also has an attractive taxation and regulatory framework for foreign mining companies and provides extensive support for investors through the Tanzanian Investment Centre. It’s supporting infrastructure and mine services industry, including numerous drilling companies, is better established relative to many other areas of Africa,” Greive adds.

Hemisphere is currently focused on the Katomatoma project but will consider diversification into other commodities, besides gold, copper and PGMs, given the appropriate commercial circumstances.